The Government of Pakistan has introduced some changes in the duty structure for imported cars this fiscal year, backed by newly issued Statutory Regulatory Orders (SROs). These updates focus on the total incidence of duties —combining Custom Duty (CD), Regulatory Duty (RD), Additional Custom Duty (ACD), and other levies—for a range of vehicle types including non-hybrid, hybrid, and electric vehicles (EVs).
One of the most significant across-the-board changes in this revision is the reduction of Additional Customs Duty (ACD) from 7% to 6% for all imported vehicles. Similarly, regulatory duty has also decreased for SUVs/4×4 vehicles, with engine capacity ranging from 1801-3000cc, from previous 90% to 40%. For cars below 1800cc and hyrids, RD has dropped by 5%, reached 10% from previous 15%.
Here’s a breakdown and analysis and comparison of the total incidence of duty and taxes for 2025, with a comparison to 2024, showing where reductions and policy shifts have occurred.
Non-Hybrid Vehicles
| Category | 2024 Incidence | 2025 Incidence | Actual % Decrease |
| 1301–1500cc | 174% | 165% | 🔻 5.17% |
| 1501–1600cc | 197% | 188% | 🔻 4.57% |
| 1601–1800cc | 197% | 188% | 🔻 4.57% |
| 1801–3000cc (cars/jeeps) | 429% | 361% | 🔻 15.85% |
| Above 3000cc | 470% | 401% | 🔻 14.68% |
| Panel/Van | 116% | 115% | 🔻 0.86% |
| Pickup | 181% | 179% | 🔻 1.10% |
| Passenger Van/Coaster (10+ seats) | 65% | 61% | 🔻 6.15% |
| Bike | 116% | 115% | 🔻 0.86% |
Observation: The most dramatic reductions are in luxury categories like 1800cc–3000cc and above 3000cc vehicles, which previously saw high duty rates. This drop points signals a shift to slightly ease pressure on these segments, possibly to improve collection by reducing smuggling or misuse of duty exemptions.
Hybrid Vehicles (HEVs)
| Category | 2024 Incidence | 2025 Incidence | Change |
| 1801–2500cc | 295% | 287% | 🔻 2.7% |
| 2501–2999cc | 295% | 287% | 🔻2.7% |
| 3000cc and above | 326% | 322% | 🔻1.23% |
Observation: Hybrid vehicles have seen moderate relief. Though still heavily taxed, the slight cuts indicate a cautious attempt to promote fuel-efficient alternatives without losing too much revenue
Electric Vehicles (EVs)
| Category | 2024 Incidence | 2025 Incidence | Change |
| Below $50,000 | 62% | 62% | ➖ No Change |
| Above $50,000 | 103% | 102% | 🔻 0.97% (ACD decreased from 7% to 6%) |
For consumers and importers alike, these revised duty structures are crucial to consider when planning future purchases or investments in the auto sector.
Stay tuned for further insights as the automotive market in Pakistan adapts to these changes.
